Member Sign In

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.

If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.

FedEx Builds New Delivery Centre

FedEx Corp. (FDX - Free Report) has announced the construction of a ground distribution facility in Southwestern Illinois. The company expects the $23.5 million worth facility to serve the 10,000-package distribution per hour upon its completion. We expect the new facility to add to FedEx’ already established infrastructure, thereby strengthening its service capabilities.

The new facility is expected to generate 25 full time jobs along with 150 part-time jobs in the state of Illinois. The company already has 16 operational facilitates in the state that cater to package delivery services in the area and work in tandem to support the economy of the state.

FedEx’ other improvement plans include productivity enhancements in the Ground segment like automation of planning and execution of free load and pickup and delivery processes. The segment’s trailers are also expected to be equipped with GPS devices to improve fleet management.

We believe near-term earnings growth will be aided by increasing profitability in Freight coupled with continued growth in the Ground segment. Additionally, improving international revenues and operational efficiency in FedEx Express will also support earnings going forward.

FedEx is boosting its international business through substantial investments to enhance its existing routes and make strategic acquisitions. The company is building a new hub in Guangzhou, China, to cater to 100 new Chinese cities within the next five years. Recently, the company announced that it will invest $100 million in China in order to strengthen its position in the country against its rival – United Parcel Service, Inc. (UPS - Free Report)

As for acquisitions, in 2012, the company took over Polish courier company Opek Sp. z o.o. as well as French B2B Express transportation company, TATEX. Soon after, the company acquired Rapidão Cometa, a Brazilian transportation and logistics company. We believe the investments in organic growth as well as acquisitions will lead to greater operational efficiencies, providing a competitive edge, generating significant long-term synergies, supporting international business growth, and driving higher profitability. The company targets 46% of its capital expenditure budget of $3.6 billion for fiscal 2013 (lower than the previous estimate of $3.9%) to be directed toward growth initiatives and 54% to be dedicated to the existing operations.

Resources

Client Support

Follow Us

Zacks Research is Reported On:

Yahoo

MSN

Marketwatch

Nasdaq

Forbes

Investors.com

Morningstar

Copyright 2017 Zacks Investment Research

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2016 and were examined and attested by Baker Tilly Virchow Krause, LLP, an independent accounting firm. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

Visit performance for information about the performance numbers displayed above.